Tesla sales decline across Scandinavia as Musk faces test of brand

Tesla's Scandinavian sales fell sharply in February from a year ago, eroding its market share as the electric vehicle (EV) maker faces a test of brand loyalty amid CEO Elon Musk's role in US President Donald Trump's administration.

Tesla, whose cars topped sales charts in Norway, Sweden and Denmark in 2023 and 2024, has slipped this year behind rivals with newer model line-ups such as Volkswagen and Toyota, registration data showed on Monday.

A total of 613 new Teslas were registered in Sweden last month, down 42% year-on-year, while registrations in Norway and Denmark each fell by 48% to 917 and 509 cars respectively, despite rising overall car demand in the three countries, including for EVs.

Musk's entry into politics, leading sweeping cuts to the US federal workforce and endorsing far-right political views in Europe, has triggered “Tesla Takedown” demonstrations in the US and calls for boycotts elsewhere.

The company did not immediately respond to a request for comment.

In Norway, where almost all new cars are fully electric, Tesla's share of car sales has slipped to 8.8% year-to-date from a market-leading 18.9% for the full-year 2024 and 20% in 2023.

Held back also by an ageing vehicle line-up, the company faces a test in the coming months as it prepares to introduce an upgraded version in Europe of its Model Y mid-size SUV, the Scandinavian region's best-selling car in the past two years.

It was unclear if Tesla would recapture its former position as the people's car of choice, the Norwegian Road Federation (OFV), an industry group, said on Monday.

“The brand has had a unique market position in Norway for several years. Whether that will continue is uncertain, because there is a lot of unrest and noise around Tesla and Elon Musk,” the OFV said.

In Denmark, a growing number of prospective buyers seeking advice from the Danish Federation of Motorists (FDM) said they were looking for alternatives to the Texas-based carmaker.

“A lot of people start by saying, 'I want to buy an electric car but I don't want it to be a Tesla'. The political consumer has always been there but it's more pronounced with Tesla now,” FDM chief adviser Ilyas Dogru said.

Long-admired as a successful industrialist, Musk himself appeared to have become the car brand's biggest enemy, said Atle Falch Tuverud, the editor-in-chief of Norwegian car trade publication BilNytt.

“There is little doubt that Tesla has now lost some of its customers and it is certain they have lost some of their potential customers,” Tuverud said, adding it could take several months to fully assess the impact on sales.

An initial answer may come in the months from March to June this year, when shipments begin of the redesigned Model Y, and the company could also opt to compete more aggressively on price, FDM's Dogru said.